Educational Purpose Only: TDS rates are indicative under Income Tax Act. Consult a tax professional for official compliance.
TDS @ 10% if PAN provided (20% without PAN). Threshold: ₹40,000 per year.
What is TDS?
Tax Deducted at Source (TDS) is a mechanism under the Income Tax Act where the payer deducts a portion of the payment as tax before releasing the amount to the recipient. The deducted tax is deposited with the government and the recipient can claim credit for it when filing their income tax return.
TDS applies to a wide range of payments — salary, interest, rent, professional fees, contractor payments, and commission. Each category has its own threshold limit and TDS rate. If the payment does not cross the threshold in a financial year, no TDS is required.
TDS rate reference table
| Payment Type | TDS Rate | Threshold |
|---|---|---|
| FD Interest | 10% (20% without PAN) | ₹40,000 per year |
| Contractor (Individual) | 1% | ₹30,000 per transaction / ₹1,00,000 pa |
| Contractor (Company) | 2% | ₹30,000 per transaction / ₹1,00,000 pa |
| Professional Fees | 10% | ₹30,000 per year |
| Rent (Plant & Machinery) | 2% | ₹2,40,000 per year |
| Commission / Brokerage | 5% | ₹15,000 per year |
Frequently Asked Questions
What is TDS and who deducts it?
Tax Deducted at Source (TDS) is a mechanism where the payer deducts a portion of the payment as advance tax before releasing it to the recipient. Banks deduct TDS on FD interest; employers deduct TDS on salary; businesses deduct TDS on professional fees, rent, and contractor payments. The deducted tax is credited to the government and appears in your Form 26AS.
How can I check my TDS deductions?
You can view all TDS deductions in your Form 26AS, available on the Income Tax e-filing portal (incometax.gov.in). Your Annual Information Statement (AIS) also shows TDS details. Ensure the TDS shown matches your records before filing your ITR.
What is Form 15G and 15H?
Form 15G is a self-declaration form submitted by individuals below 60 years to prevent TDS deduction if their total income is below the taxable limit. Form 15H is the equivalent for senior citizens (above 60). These forms must be submitted to the bank at the start of every financial year.
What happens if TDS is deducted in excess?
If TDS deducted is more than your actual tax liability, you can claim a TDS refund when filing your Income Tax Return (ITR). The excess TDS will be refunded with interest at 6% per annum from April 1 of the assessment year.
Related Calculators
This calculator is for educational and illustrative purposes only. TDS rates and thresholds are subject to change by the government. Always verify current rates with a qualified tax professional or the Income Tax Department website before filing or deducting TDS.
Why this calculator is useful
Estimate TDS deducted on FD interest, contractor payments, professional fees, rent, and commission. Select the payment type to see the applicable TDS rate, deducted amount, and net payment. This page is designed to help readers understand the financial scenario clearly, compare the numbers, and make better decisions with practical context.
Why this matters
TDS Calculator turns a common financial or planning question into a clear number you can compare, discuss, and act on.
What to review
Use realistic inputs and update assumptions if your situation changes, because even small changes can shift the outcome noticeably.
How to use the result
Treat the calculation as a practical planning guide and verify it with your records or a professional for important decisions.
Quick examples and best practices
- Use realistic inputs: Enter values that match your real income, loan terms, or investment profile so the result feels practical.
- Compare scenarios: Change one variable at a time to see how the result shifts before making a decision.
- Verify major choices: For high-stakes decisions, cross-check the output with documents, spreadsheets, or a qualified professional.
Common questions
What is TDS and who deducts it?
Tax Deducted at Source (TDS) is a mechanism where the payer deducts a portion of the payment as advance tax before releasing it to the recipient. Banks deduct TDS on FD interest; employers deduct TDS on salary; businesses deduct TDS on professional fees, rent, and contractor payments. The deducted tax is credited to the government and appears in your Form 26AS.
How can I check my TDS deductions?
You can view all TDS deductions in your Form 26AS, available on the Income Tax e-filing portal (incometax.gov.in). Your Annual Information Statement (AIS) also shows TDS details. Ensure the TDS shown matches your records before filing your ITR.
What is Form 15G and 15H?
Form 15G is a self-declaration form submitted by individuals below 60 years to prevent TDS deduction if their total income is below the taxable limit. Form 15H is the equivalent for senior citizens (above 60). These forms must be submitted to the bank at the start of every financial year.
What happens if TDS is deducted in excess?
If TDS deducted is more than your actual tax liability, you can claim a TDS refund when filing your Income Tax Return (ITR). The excess TDS will be refunded with interest at 6% per annum from April 1 of the assessment year.